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WAEC Financial Accounting 2017 Question 9

Question 9

Accounting Equation

The balance sheet equation shows

  1. A.current assets minus current liabilities.
  2. B.the difference between fixed assets and current liabilities.
  3. C.assets and sources of financing them.
  4. D.sources of funding owner's equity.
Show the answer and explanation

Answer: C (assets and sources of financing them.)

Explanation

The balance sheet equation (assets = capital + liabilities) shows the assets and where the money to finance them came from.